FIRST QUANTUM MINERALS REPORTS FOURTH QUARTER 2016 RESULTS (In United States dollars, except where noted otherwise)

NEWS RELEASE

17-05

February 16, 2017

www.first-quantum.com

FIRST QUANTUM MINERALS REPORTS FOURTH QUARTER 2016 RESULTS

(In United States dollars, except where noted otherwise)

First Quantum Minerals Ltd. (“First Quantum” or the “Company”, TSX Symbol “FM” ) today announced comparative

earnings1 of $27 million ($0.04 per share) and cash flows from continuing operating activities 1 of $93 million ($0.14 per share 1) for

the three months ended December 31, 2016.

For the full year 201 6, comparative earnings amounted to $ 165 million ($0.24 per share) and cash flows from operating activities to

$914 million ($1.33 per share).

FOURTH QUARTER 2016 HIGHLIGHTS1

 Commercial production was declared at Sentinel effective November 1, 2016. The decision followed the increase in supply of

adequate and consistent electricity to the mine from 126MW in mid -October to 136MW in the quarter to support the mine’s

operating plan.

 Copper production and sales2, 3 of 146,101 tonnes and 136,265 tonnes, respectively:

- Established new quarterly First Quantum records in both categories.

- Reflect continued strong performances across the Company’s operations.

 The Kansanshi copper smelter recorded its highest quarterly throughput in its 18 months of commercial production at 314,399

tonnes of concentrate exceeding its design annual throughput rate of 1.2 million tonnes of concentrate, on an annualized basis.

 Copper production unit cost rose in the quarter as lower gold credit, higher maintenance and mining costs at Kansanshi and

planned maintenance shutdown and seasonal electricity cost at Las Cruces partially offset the embedded benefits of the

Kansanshi smelter and cost savings initiatives.

 C14 cash cost guidance for 2017 is unchanged from previously disclosed at $1.20 – $1.40 per pound including Sentinel, which

recorded an average C1 cash cost of $1.47 for its first two months of commercial production.

 Realized average prices for copper and nickel of $2.18 per pound and $4.50 per pound, respectively, were below the average

LME prices on account of the Company’s sales hedge programs and timing of sales.

- For the year 2016, the copper sales hedge program added $60 million for the full year, or $0.05 per pound to revenues.

- Sales hedge positions outstanding as at February 16, 2017 totalled 432,500 tonnes of copper at an average price of $2.27

per pound.

 Recorded impairments to exploration and other assets of $13 million.

 Maintained a sound financial position with $713 million of committed undrawn facilities, $565 million in net unrestricted

cash, $964 million of working capital and in full compliance with all financial covenants.

 The Law 9 mining concession for Minera Panama SA, the Panamanian company that holds the Cobre Panama concession, was

extended for a second 20-year term from March 1, 2017 to February 28, 2037.

 The development of Cobre Panama continues on track for a phased commissioning in 2018 and continued ramp-up in 2019.

- The overall project is estimated at over 46% complete.

- The power station and associated infrastructure continued to be prioritized for early completion starting in the second half

of 2017.

- The total capital expenditure for the project is unchanged at $5.48 billion.

- The process to put in place project financing continues to advance.

 As previously updated in a news release on November 9, 2016, a Notice of Arbitration and a Statement of Claim filed in the

High Court for Zambia were received from ZCCM International Holdings PLC ("ZCCM") under the Kansanshi Minin g PLC

("KMP") Shareholders Agreement. ZCCM is a 20% shareholder in KMP. These actions arise from a dispute about the rate of

interest paid on deposits made by KMP with the Company’s financing entity, FQM Finance Ltd. Having carefully studied the

claims made in the Notice of Arbitration and the Statement of Claim, the Company is firmly of the view that the claims are

without merit, or indeed any foundation in facts. The Company will provide further information as and when required.

First Quantum Minerals Q4 and Year 2016 Financial and Operating Results 17-05

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 Declared a final dividen d of CDN$0. 005 per share, in respect of the financial year ended December 31, 2016. The final

dividend together with the interim dividend of CDN$0.005 per share is a total of CDN$0. 01 per share for the 2016 financial

year.

1 Net earnings (loss) attributable to shareholders of the Company and Earnings before interest, tax, depreciation, amortization and impairment

(“EBITDA”) have been adjusted to exclude items which are not reflective of underlying performance to arrive at comp arative earnings and

comparative EBITDA. EBITDA, comparative earnings, comparative earnings per share , comparative EBITDA and cash flows per share are not

measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. The Company has disclosed these measures to assist

with the understanding of results and to provide further financial information about the results to investors . Refer to the “Regulatory Disclosures”

section in the MD&A for the year ended December 31, 2016 for further information. Furthermore, performance and financial measures exclude the

Kevitsa mine which was sold on June 1, 2016.

2 Total copper production includes production from Sentinel of 47, 785 tonnes and 139,600 tonnes for the three and twelve months ended December

31, 2016, respectively (15,190 tonnes and 32,971 tonnes for three and twelve months ended December 31, 2015, respectively). T otal copper sales

include sales from Sentinel of 39,494 tonnes and 115,782 tonnes for the three and twelve months ended December 31, 2016, respectively ( 6,422

tonnes and 8,896 for three and twelve months ended December 31, 2015). The Company determined that commercial production at Sentinel

commenced effective No vember 1, 2016; therefore, revenue and operating costs at Sentinel have been recorded for the period from November 1,

2016 to December 31, 2016 in the Statement of Earnings (loss). Consequently, production and sales from Sentinel prior to this period is ex cluded

from earnings, C1, AISC & C3 cost metrics. Please see the “Sentinel” operation section in MD&A for the year ended December 31, 2016 for further

information.

3 Production is presented on a copper contained basis, and is presented prior to processing through the Kansanshi smelter.

4 C1, AISC and C3 cost per pound are not recognized under IFRS. Refer to the “Regulatory Disclosures” section in the MD&A for the year ended

December 31, 2016 for further information.

CEO’S COMMENTS

“The fourth quarter capped off a strong year for First Quantum . Amid some of the most challenging and volatile market

conditions, our employees remained focused and together our efforts produced the highest production and sales in the

Company’s history, a much reduced unit cost of production and i mportantly, a sound balance sheet with the financial

flexibility to support our operating and growth plans . Additionally, the transition of Sentinel into commercial operations

and the progress at the Cobre Panama project were important milestones,” commented Philip Pascall, Chairman and CEO.

“While the sentiment for our industry has improved markedly, we will carry on expecting volatility and will continue to

conduct our activities accordingly. We think Cobre Panama will start production at an opportune time. It is our belief that

copper has very compelling fundamentals and that this will become more broadly apparent sooner than previously

anticipated.”

First Quantum Minerals Q4 and Year 2016 Financial and Operating Results 17-05

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OPERATING HIGHLIGHTS – CONTINUING OPERATIONS

Three months ended

December 31

Year ended

December 31

(U.S. dollars where applicable) 2016 2015 2016 2015

COPPER

- Production (tonnes) 146,101 115,886 539,458 411,025

- Sales (tonnes)

136,265 119,534 535,613 391,653

- Cost of production, excluding Sentinel:

o C1 (per lb) $1.16 $1.06 $1.03 $1.21

o AISC (per lb) $1.61 $1.51 $1.41 $1.85

o C3 (per lb) $1.84 $1.85 $1.81 $2.14

- Cost of production, including Sentinel:

o C1 (per lb) $1.22 $1.06 $1.06 $1.21

o AISC (per lb) $1.71 $1.51 $1.46 $1.85

o C3 (per lb) $1.91 $1.85 $1.83 $2.14

- Realized price (per lb) $2.18 $2.40 $2.26 $2.49

NICKEL

- Production (contained tonnes) 6,206 7,652 23,624 26,667

- Sales (contained tonnes) 6,073 8,583 25,882 26,933

- Cost of production:

o C1 (per lb) $4.46 $4.49 $4.66 $4.60

o AISC (per lb) $5.03 $4.95 $5.29 $5.30

o C3 (per lb) $6.16 $5.82 $6.34 $5.99

- Realized price (per payable lb) $4.50 $4.29 $4.25 $5.18

GOLD

- Production (ounces) 54,234 53,889 214,012 211,067

- Sales (ounces) 45,620 57,958 232,783 213,927

FINANCIAL HIGHLIGHTS

Three months ended

December 31

Year ended

December 31

(U.S. dollars millions, except where noted otherwise) 2016 2015 2016 2015

Sales revenues 689 719 2,673 2,511)

Gross profit 52 110 339 287)

Net earnings (loss) per share from continuing operations

attributable to shareholders of the Company 12 111 222 (501)

Net earnings (loss) from discontinued operations - 3 (267) 5

Net earnings (loss) per share from continuing operations

attributable to shareholders of the Company $0.02 $0.16 $0.32 ($0.77)

Basic and diluted earnings (loss) per share $0.02 $0.17 ($0.07) ($0.77)

Comparative EBITDA 218 224 964 732

Comparative earnings 27 182 165 256

Comparative earnings per share $0.04 $0.27 $0.24 $0.40

Cash flows from continuing operating activities 93 743 914 1,094

First Quantum Minerals Q4 and Year 2016 Financial and Operating Results 17-05

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CONFERENCE CALL & WEBCAST

Conference call and webcast details are as follows:

Date: February 17, 2017

Time: 9:00 am (EST); 2:00 pm (GMT); 6:00 am (PST)

Webcast: www.first-quantum.com

Dial in: North America: (toll free) 1 877 291 4570

North America and international: 1 647 788 4919

United Kingdom: (toll free) 0 800 051 7107

Replay: Available from 11:00 am (EST) on February 17 until 11:59 pm (EST) on February 24, 2017

North America: (toll free) 1 800 585 8367

North America and international: 1 416 621 4642

Passcode: 56874535

COMPLETE FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS

The complete audited consolidated financial statements and Management’s Discussion and Analysis for the year ended December 31,

2016 are available at www.first-quantum.com and should be read in conjunction with this news release.

On Behalf of the Board of Directors of First Quantum Minerals Ltd.

G. Clive Newall

President

For further information visit our website at www.first-quantum.com

North American contact: Sharon Loung, Director, Investor Relations

Tel: (647) 346-3934 Fax: (604) 688-3818 Toll Free: 1 (888) 688-6577 E-Mail: [email protected]

United Kingdom contact: Clive Newall, President

Tel: +44 140 327 3484 Fax: +44 140 327 3494 E-Mail: [email protected]

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain statements and information herein, including all statements that are not historical facts, contain forward -looking

statements and forward -looking information within the meaning of applic able securities laws. The forward -looking

statements include estimates, forecasts and statements as to the Company’s expectations of production and sales volumes

and expected timing of completion of project development at Enterprise and Cobre Panama and are subject to the impact

of ore grades on future production, the potential of production disruptions, capital expenditure and mine production costs,

the outcome of mine permitting, the outcome of legal proceedings which involve the Company, information wi th respect

to the future price of copper, gold, cobalt, nickel , zinc, pyrite and sulphuric acid, estimated mineral reserves and mineral

resources, First Quantum’s exploration and development program, estimated future expenses, exploration and

development c apital requirements, the Company’s hedging policy, and goals and strategies. Often, but not always,

forward-looking statements or information can be identified by the use of words such as “plans”, “expects” or “does not

expect”, “is expected”, “budget”, “s cheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”

or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”,

“would”, “might” or “will” be taken, occur or be achieved.

With respect to forward -looking statements and information contained herein, the Company has made numerous

assumptions including among other things, assumptions about continuing production at all operating facilities, the price of

copper, gold, nickel, zinc, pyrite, cobalt and sulphuric acid, anticipated costs and expenditures and the ability to achieve

the Company’s goals. Forward-looking statements and information by their nature are based on assumptions and involve

known and unknown risks, uncertainties and other factors which may cause the actual results, performance or

achievements, or industry results, to be materially different from any future results, performance or achievements

expressed or implied by such forward -looking statements o r information. These factors include, but are not limited to,

First Quantum Minerals Q4 and Year 2016 Financial and Operating Results 17-05

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future production volumes and costs, the temporary or permanent closure of uneconomic operations, costs for inputs such

as oil, power and sulphur, political stability in Zambia, Peru, Mauritani a, Finland, Spain, Turkey, Panama, Argentina and

Australia, adverse weather conditions in Zambia, Finland, Spain, Turkey and Mauritania, labour disruptions, power

supply, mechanical failures, water supply, procurement and delivery of parts and supplies to the operations, and the

production of off-spec material.

See the Company’s Annual Information Form for additional information on risks, uncertainties and other factors relating

to the forward -looking statements and information. Although the Company has at tempted to identify factors that would

cause actual actions, events or results to differ materially from those disclosed in the forward -looking statements or

information, there may be other factors that cause actual results, performances, achievements or e vents not to be

anticipated, estimated or intended. Also, many of these factors are beyond First Quantum’s control. Accordingly, readers

should not place undue reliance on forward -looking statements or information. The Company undertakes no obligation to

reissue or update forward-looking statements or information as a result of new information or events after the date hereof

except as may be required by law. All forward -looking statements and information made herein are qualified by this

cautionary statement.